Crypto Rally Pushes Crypto Market Capitalization Above $1 Trillion

Cryptocurrency Rising

After the recent turmoil of the crypto market, there is finally some good news on the horizon as the market cap surpassed 1 trillion for the first time since early June. Due to macroeconomic issues and large sell-outs, the cryptocurrency market has been struggling to stay above safety.

After hitting it’s peak just over $3 Billion in November 21, the cryptocurrency market cap dipped consistently and hit a plateau at $800B in the middle of June. These are levels that had not been seen for years before BTC had it’s rise in popularity.

Since the dip in cryptocurrencies, the average investment doubled (with regards to token purchase, not monetary), with 1 ETH being available around the 1200 dollar mark, down from the peak of over 4000 dollars earlier this year. This means that when you purchased 1 ETH at $4,000 at it’s peak, you could have purchased 3 or more at it’s lowest this year before the cryptocurrency market stabilised and began to rise again.

Cryptocurrencies finally began trending upwards last week, with the top seven currencies increasing by around 13%. The rally is due to several things, broader economic trends, positive cryptocurrency developments and investors betting on the success of the cryptocurrency merge.

Other tokens were propped up by positive developments with Ethereum and it’s merge, the developers gave a clear timeline for the long-awaited hard fork merge and if all goes to plan, the merge will go ahead on September 19th and slash 99% of the energy and carbon emissions created from that single token when it shifts from POW to POS.

Whilst most cryptocurrencies have gained a little in value over the past week, ETH has raced ahead and rallied 40% since early June, with only SOL being comparative in this gain at 25%.

The sell off seen from BTC and ETH in it’s time of need were not from people trying to sell, but because 2 firms were forced to sell all assets – Crypto Hedge Fund and Three Arrows Capital. From a leverage standpoint, their collateral was liquidated and this had a direct marker on the crypto market.

What’s Next for Crypto?

 

Crypto is back on the rise, regaining its foothold in the market and soon we should see the levels of crypto holdings that we had seen prior. If you are an investor, now is a great time to look at investing in Cryptocurrency, if the market cap raises back to the previous $3B it would be a potential 200% ROI dependant on the correct cryptocurrency purchase.

Whilst the merge and movement from proof of work to proof of stake for ETH leaves ETH within dubious circumstances, the market has boomed particularly and shows that the belief in the token is higher than ever.

If you would like to have a look at which banks are the best for investing in cryptocurrency, check out our post where we outline the best banks to go with for cryptocurrency investments.

 

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